Section III. Profile of Current California Attorneys

Transcription

1 Section III Profile of Current California Attorneys The first major objective set out for this research, as explained in the Introduction, was to develop a profile of current active California Bar members (see Request for Proposal for a Study of the Need for a New Law School in California, University of California, August 1999). To establish a starting point for subsequent projections, the profile below offers a macro perspective on current demographic and associated attorney workforce characteristics in the state of California and in certain cases for specific regions within the state. As part of this discussion, we also give detailed attention to types of work settings that employ lawyers as well as the distribution of lawyers over varying office sizes and practice specialties. Additionally, the profile describes geographic relationships between where lawyers receive their degrees and where they practice. For these purposes, the profile relies exclusively on descriptive analyses of secondary data obtained from several different information sources. 1 Because different sources of data differ in extent of coverage and level of aggregation as well as in how particular variables are defined, it is not always possible to combine them to provide a comprehensive picture along all the dimensions of interest to this study. The profile therefore provides as complete and current a description of the state of the legal workforce in California as is feasible given the limitations of extant datasets. The findings are intended both to complement projections of future trends in supply of and demand for lawyers (see Section 4) and to supplement what is learned in interviews with representatives of law schools and firms (see Sections 5 and 6). State Description The legal industry is part of the service sector and, as such, is directly influenced by economic and demographic changes. Therefore, to understand the legal market for the state of California, it is first important to understand the overall trends in population, demographics, and industry for the state. Population Currently, California is the most populated and one of the most ethnically diverse states in the United States. Figure 3.1 displays the current and projected population trends for the state, while Figure 3.2 displays the ethnic breakdown of the state. 2 Figure 3.1 indicates that the state has undergone and will continue to sustain strong, steady population growth. 1 A detailed description of each of the data sets is provided in Appendix A, including a summary of the differences between the data sets and why a particular data set is used the analysis versus another data set. 2 White is defined as Non-Hispanic White, Asian & Pacific is defined as Non-Hispanic Asian and Pacific Islanders, Black is defined as Non-Hispanic Black, and American Indian is defined as Non- Hispanic American Indian. 14

2 Figure 3.1 Current and Projected Population Trends in California 1990 Through In Millions Source: U.S. Census Bureau, The years are census estimates while the years are census projections. However, Figure 3.2 suggests that the composition of the population will change over the next few decades. The white population is estimated to constitute less than 50 percent of the population in the year 2000, and the Hispanic population is projected to surpass the white population by year Asians are also increasing and now represent over 10 percent of the population. In contrast, the Black and American Indian populations have maintained a constant proportions and are projected to sustain these proportions in the future. 60% 50% 40% 30% 20% 10% 0% Figure 3.2 Current and Projected Ethnic Mix of the State in California 1990 Through % White Hispanic Asian & Pacific Black American Indian Source: U.S. Census Bureau, The years are census estimates while the years are census projections. 15

3 Industry Another dimension of California s diversity is reflected in its economy. From its strong growth in software development in Silicon Valley to its bustling international harbors, California is experiencing healthy growth in a number of different industries. Table 3.1 displays the current and projected employment breakdowns for the state by the California Employment Development Department s (EDD) major industry categories. As indicated in Table 3.1, Services and Trade together currently make up the biggest share of employment in the state. Both of these industries are projected to sustain tremendous growth through The Government and Transportation and Public Utility industries are also projected to maintain strong growth through the year 2006, while Manufacturing, Mining and Construction are projected to have slower but solid growth. In contrast, California s Finance, Insurance, and Real Estate industries are projected to experience relatively slow growth. In total, the state s employment figures are projected to grow by almost 17 percent between 1998 and Table 3.1 Current and Projected Industry Breakdowns for California Industry 4 Employment Percentage Change Services 4,219,500 5,391, Trade 3,121,900 3,595, Government 2,163,600 2,492, Manufacturing 1,960,300 2,122, Finance, Insurance, & 798, , Real Estate Transportation & 694, , Public Utilities Construction 601, , Mining 25,400 26, Total Non- Agriculture Employment 13,584,200 15,872, Source: 1999 California Employment Development Department. 3 It should be noted that EDD industry data do not represent self-employed individuals in any of the sectors tabled. 4 While most of the industry categories are self-explanatory, some need further explanation. Trade includes wholesale and retail trade, and Services includes such things as personal services, business services, auto repair, motion pictures, amusement parks, health services, legal services, etc. 16

4 Lawyer Trends in California Bar Membership In a vibrant economy and society, it is necessary for organizations to make contracts that are legally binding, for consumers to be protected from fraud, and for citizens to have their individual liberties protected. Lawyers provide these and other services, and thus play a vital role in society. These services are provided through a number of modes. Some lawyers work in large legal firms and some in small firms. Others work as inhouse counsel for large corporations, while still others work in government or nonprofit agencies. Currently, there are just over 165,000 California Bar-certified lawyers, and this number is growing each year. This growth is reflected in Figure 3.3 by the increase in the total number of lawyers. More specifically, the figure displays the trends of total and active California Bar-certified lawyers in the state of California over time. As the figure highlights, California has experienced consistent growth over the past two decades in the total number of lawyers certified by the state Bar. However, the proportion of active lawyers has not maintained the same level of growth. In other words, the percentage of inactive lawyers has grown over time Figure 3.3 Trends in the Number of Bar Members in the State of California Total Active Source: State Bar of California, Inactive lawyers are defined as lawyers who have Bar certification but have not maintained full Bar membership and other practice prerequisites. An active lawyer is a lawyer who has maintained full Bar membership and is entitled to practice law in the state. Converting from inactive to active status only requires a change in fee. 17

5 Number of Attorneys Relative to Population While Figure 3.3 displays the trends in total and active lawyers over time, Figure 3.4 highlights the number of California lawyers relative to the state s population and the number of lawyers nationwide relative to the nation s population. As can be seen from the figure, California s lawyer-to-population ratio has been higher than that of the nation, as a whole. The figure indicates, however, that in the last two years the number of lawyers per 1000 people in the state has decreased, while the number of lawyers per 1000 people in the nation has increased. At present, the two ratios are quite similar Figure 3.4 Ratio of Lawyers per Thousand People for California and the Nation Nation State Source: Current Population Survey and U.S. Census Bureau. Ethnic Distribution of Lawyers for California Table 3.2 displays the number of lawyers per 1000 people for specific ethnic groups. The table suggests that whites are overrepresented in the legal profession and other ethnic groups are underrepresented. Specifically, the table shows that whites have the highest number of lawyers per 1000 people (6.21) and Blacks have the fewest per 1000 people (1.12). In essence, the table suggests that there is a large disparity among ethnic groups in terms of representation in the legal profession. Later, we will examine these ratios for each region. 18

6 Table 3.2 California Lawyers per 1000 People for Different Ethnic Groups Ethnicity Lawyers Per 1000 People In Each Ethnic Group WHITE 6.21 HISPANIC 1.17 ASIAN & PACIFIC ISLANDER 2.58 BLACK 1.12 TOTAL 3.92 Source: 1997 Current Population Survey. Age Distribution of Lawyers for California In addition to the ethnic distribution, we also report the average age of lawyers over time for both the nation and the state in Figure 3.5. As the figure suggests, the average age of lawyers is slowly increasing over time and may be a reflection of the aging of the baby boomers. 50 Figure 3.5 Average of Age of Lawyers for California and the Nation 45 Age 40 Nation State Years Source: Current Population Survey. The aging of the profession has implications for the future supply of lawyers, although our projections indicate that lawyers tend to retire from employment later than other professionals (see Section 4). On the other hand, responses to interview questions (see Sections 5 and 6) suggest that the aging of the baby boom cohort may also affect demand by increasing the need for certain types of legal specialties (e.g., estate planning, legal services to the elderly, and some aspects of health law). 19

7 Detailed Lawyer Description By Region While the preceding section described some general demographic and other relevant characteristics of California lawyers, this section provides a detailed description by region of the legal profession. This includes the work setting, office size, and breakdowns of specialties, as well as ethnic distribution of lawyers by regions. For purposes of disaggregating the state profile, the regional breakdowns we use are based upon Current Population Survey (CPS) standard metropolitan statistical area (SMSA) groupings. There are eight regions included in our breakdown. These regions and the counties included in each region are displayed in Table 3.3. Some rural counties are not included in the CPS Metropolitan Areas (MAs) 6 groupings; they are lumped together as a region called Residual. Most of these residual counties are located in the extreme northern regions of the state. The regional breakdowns are intended to represent regional labor markets for lawyers; therefore, we have included the current and projected population sizes and projected growth figures for each region. It is noteworthy that Orange County, Inland Empire, San Diego, San Joaquin Valley, and Sacramento Valley are all anticipated to grow by over 20 percent between 1998 and Metropolitan Areas (MAs) is a term the census bureau uses to define a collective area. 20

9 California Table 3.4 Number of Lawyers Per Region of California Los Angeles Orange County Inland Empire San Diego Santa Barbara San Joaquin Valley Sacramento Valley Bay Area Residual Total 133,972 43,003 11,474 3,659 11,181 3,520 4,343 8,294 38,023 1,543 Source: 1999 State Bar of California; the California total includes California Bar members who do not live within the state and who are not represented in regional totals (see also table 4.2). Figure 3.6 presents the racial mix of lawyers by region in White lawyers represented over 80 percent of the lawyers employed in each region at that time. In order to get a proper perspective, we must compare this distribution to each region s 1990 general population racial mix, which is displayed in Figure 3.7. A comparison of the two figures indicates that white lawyers were disproportionately represented in each region. It should be noted that our analysis, as explained previously, suggests that the proportion of white Californians in the population has decreased in recent years while the Hispanic and Asian proportions have increased in recent years. Based on the literature review, we have evidence that these proportional trends in population have not been well matched in the legal profession. Therefore, we believe that the mismatch in racial composition of lawyers relative to California s general population has either remained stable or increased. When it becomes available, census data for the year 2000 should be analyzed to resolve this question. 7 7 More recent CPS data constitute an alternative to using 1990 census data. However, the more recent CPS data are limited by very small sample sizes for each region that create large variances in estimates from year to year at the regional level. Therefore, we choose to use the 1990 census data instead. 22

11 Legal Settings and Law Office Size within California In this section, we describe current trends in the distribution of lawyers among various work settings within California. We also describe the current distribution of lawyers among different office sizes for the state. There are a number of ways in which the legal setting could be classified for lawyers. Adopting categories used for gathering CPS data, we classify settings in four ways: Self-employed, Government, Private, not legal services, and Private, legal services. 8 The trends of lawyer placement among these work settings are displayed in Figure 3.8. The data suggest that there is a decline in the percent of lawyers who are self-employed and a decline in the percent of lawyers working in government organizations over the past few years. In contrast, there appears to be a significant increase in the percent of lawyers employed in private legal service organizations, while the percent of lawyers who work in private organizations that do not provide legal services is relatively constant over the four years for which these data are provided. Figure 3.8 Work Settings for Attorneys in California Percent Source: Current Population Survey. Self-employed Private, legal services Government Private, not legal services Despite the decline in the percent of self-employed lawyers, this work setting still remains the most common type of employment for lawyers. This could change in the near future if the trend of lawyers migrating towards private legal service organizations continues. A large proportion of these self-employed lawyers are in solo practice law firms, and together with the lawyers practicing in private legal service settings, these lawyers encompass all of the lawyers practicing in law firms. Thus law firms presently account for nearly 70 percent of all lawyers. Therefore, it is important to analyze the distribution of law firms across the regions to get a greater sense of the labor market for 8 These categories of work settings parallel those used in the MacCrate Report (See Section II), with a few exceptions; specifically, the MacCrate Report does not treat self-employed as a separate type of work setting for lawyers, while the CPS doe not break government settings into subcategories. 24

12 lawyers. In Figure 3.9, we display the distribution of lawyers among law offices of various sizes for the state of California and its regions. 9 Figure 3.9 Percent of Lawyers within Law Firms by Office Size for California and Each Region 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% CALIFORNIA Los Angeles Orange County Inland Empire San Diego Santa Barbara San Joaquin Valley Sacramento Valley Bay Area Residual to 50 3 to 10 1 to 2 Source: 1999 Martindale Hubbell. Note: See Table 3.3 for a list of counties located in each region. The figure displays the present percent of lawyers in the four size classifications of law offices: very small (1 to 2), small (3 to 10), medium (11 to 50), and large offices (51+). 10 Currently, just over 10 percent work in an office of only 1 or 2 lawyers. Lawyers that work in these very small offices represent a greater proportion in the less populated regions of the Inland Empire, Santa Barbara, and the Residual Region than in the larger urban areas. Lawyers that work in offices of 3 to 10 people are also more prevalent in these less populated regions and represent nearly 30 percent of all lawyers for the state. Lawyers that work in medium-size law firms are also well represented in all areas except the Residual Region. Finally, lawyers that work in large offices are much more prevalent in large urban areas, while very few lawyers work in such large offices in the less 9 In Appendix A, a full distribution of lawyers in the various law office sizes in the state of California and among the regions is provided (Table A.2). 10 Office size classifications are based on The Task Force on Law Schools and the Profession: Narrowing the Gap (Legal Education and Professional Development: An Educational Continuum: 1992). They are similar but not identical to the self-report categories used in the 1994 Hensler and Reddy survey (See Section II). While the large firm size categories are identical, minor discrepancies exist among the other three categories (e.g., Hensler and Reddy treat solo practitioners as a separate size category while the Task Force Report uses 1 2 employees to define its smallest size category). Although such discrepancies are common among secondary sources and make difficulties for data aggregation, they do not affect the main conclusions drawn about the profile of California lawyers here. 25

13 populated regions. Lawyers that work in large offices make up more than 10 percent of the lawyers in all the regions except the San Joaquin Valley, Santa Barbara, and the Residual Region. In summary, a majority of lawyers are either self-employed or work in a private legal practice organization. Lawyers are much more likely to be in small or very small offices if they are located in a less populated area, and they are more likely to be in a medium or large office in a large urban area. Lawyers by Specialty In the post World War II era, an increasing number of large law firms emerged that allowed greater specialization among lawyers. In this section, we detail the distribution of specialties among the regions. 11 Table 3.5 displays the proportion of lawyers in each specialty within each region and the state as a whole. As the table suggests, corporate law and trusts and estates have the highest percentage of lawyers in nearly every region. Antitrust and media/entertainment law represent a very low percentage of lawyers in every region except for Los Angeles. 11 In total, there are 116 different specialties in the Martindale Hubbell data set. We collapsed these specialties into 19 major areas that have a strong representation in California and a residual specialty category called Other. 26

15 whole has an index value of 1.0. Note, however, that the purpose of this index is to facilitate comparisons among regions on the number of lawyers per population for a specific specialty. Because the denominator is not constant across specialties, comparisons across specialties are not meaningful. The indices for each region and for each specialty within regions are displayed in Table The bottom line of the table represents the overall index for each region. The table clearly indicates that the Inland Empire, Santa Barbara, San Joaquin Valley, and the Residual Region (composed of rural counties) each have indices of less than one, signifying that these regions have fewer lawyers per person than other regions of the state and the state as a whole. The index is especially low for Inland Empire, that is, the total index for the whole region (0.30) 15 is substantially lower than the rest of the state, excluding the Residual Region. In contrast, the Bay Area has the highest total index (1.35). Other regions that have a high total index are Los Angeles, Orange, and San Diego. With regard to specialties within specific regions, an index greater than one indicates that the number of lawyers per person in that specialty in that region is greater than the average number of lawyers per person in that specialty in the state. For example, Los Angeles has an especially high index for entertainment law (2.52). This means that a higher proportion of the state s entertainment lawyers practice in Los Angeles, as would be expected. Also as expected, we find high indices for government law in Sacramento Valley and for securities and investment and technology law in the Bay Area. In contrast, Inland Empire has several categories with particularly low indices, including antitrust, banking, entertainment, intellectual property, securities and investments, and technology law. San Joaquin Valley has particularly low index values for antitrust, technology, securities and investments, media/entertainment, and intellectual property, while the Residual Region has very low indices for corporate law, insurance, bankruptcy, banking, real estate, environmental, health care, media/entertainment, and intellectual property. fact that Santa Barbara has more trusts and estate lawyers per population than other regions, while it has fewer corporate lawyers per population than other regions. 14 The data are provided by Martindale Hubbell. This data set is intended to be a marketing tool for lawyers. As such, lawyers usually claim more than one specialty and therefore, double counting does occur across specialties. If one added the total number of lawyers in each specialty, therefore, the sum would be greater than the total number of lawyers in the survey. The Martindale Hubbell data set does not capture the universe of lawyers for the state of California. In 1999, the Martindale Hubbell data set included over 97,000 lawyers, which represents just over 72 percent of all active lawyers in the state of California. 15 Indicated by the total row at the bottom of the table. 28

16 Table 3.6 Index of Lawyer to Population Ratio in Each Specialty for Each Region Los Orange Inland San Santa San Joaquin Sacramento Bay Residual Specialty Angeles County Empire Diego Barbara Valley Valley Area Government/ Administration Anti-Trust NA Corporate Law Family Insurance Litigation Bankruptcy Banking Technology Real Estate Criminal Trusts & Estates Land Use Labor Environmental Securities and Investments Health Care Media/ Entertainment Intellectual Property Other Total Source: 1999 Martindale Hubbell and 1998 Census. An index value of less than 0.30 is highlighted in bold. For each specialty, the index is equal to the lawyer-to-population ratio for the region divided by lawyer-to-population for the state. By definition, statewide ratios for each specialty are equal to Index values can be compared across regions for a given specialty, but cannot be compared across specialties because the denominator is not constant across specialties. Table 3.6 generally indicates that there are disparities among the regions in the current supply of specialized lawyers. This disparity can be attributed to a number of factors. Two primary factors are the industry makeup of the region and the demographic characteristics of a region. First, the industry makeup of a region will often determine the specialty needs. For instance, the entertainment industry represents a large portion of Los Angeles s economy, consequently, there is a greater demand for entertainment lawyers in Los Angeles. However, in other cases, a particular industry can be prevalent within a region, but the headquarters of those industries may be in another region. In such cases, lawyers may be consulted in the same region as the headquarters and not at the place of production. 29

17 Secondly, the needs of the people of a region will influence local specialization. For instance, certain regions may have a different age distribution for instance, a relatively higher proportion of retirees. In a region with a high proportion of retirees, the region may need more trust and estate lawyers for example. This may be true of regions like San Diego, which attract a sizable population of retirees. These are just a few of examples to explain why lawyers are distributed differently by specialty over the regions. However, they also illustrate factors that affect the supply and demand of lawyers within a region and the state. Law Schools In this section, the geographical distribution of both recent graduates and all graduates from California s ABA-approved law schools is examined. These schools constitute the majority of attorneys practicing in California. 16 New Graduates In Figure 3.10, we display the geographic placement of the 1997 graduates along with the entire alumni of 11 California ABA-approved law schools plus the average of the rest of the ABA-approved schools. 17 Two major conclusions can be drawn from the figure. First, the vast majority of both new graduates and the entire alumni of the schools stay within the state to work. Second, there are no systematic patterns of difference in geographical placement between new graduates and the entire alumni body. 16 The Martindale Hubbell data are survey data in which respondents specify where they went to law school. Not all respondents disclosed their school. Out of the lawyers who did report their law school, 58,125 went to one of the ABA-approved law schools in California. This means that at least 59.5 percent of the lawyers who responded to the Martindale survey went to an ABA-approved law school. 17 We present data separately for the top 11 ABA-approved law schools according to criteria elaborated in Section 5 and Appendix C. These schools are the focus of interview findings reported in Section 5 below. 30

18 Figure 3.10 Percent of New Graduates Whose First Position is Within California and the Percent of All Graduates Who Are in California Hastings College of Law Loyola Marymount Pepperdine University Stanford University University of California Berkeley University of California Davis University of California Los Angeles University of San Diego University of San Francisco Santa Clara University University of Southern California Average of the Rest of the ABA-Approved Schools New Graduates All Graduates Source: 1999 U.S. News and World Report (new graduates) and 1999 Martindale Hubbell (all graduates). Rest of ABA-approved schools include: California Western, Golden Gate University, McGeorge School of Law, Southwestern University, and Whittier University. Chapman, Western State and Thomas Jefferson are not included here because U.S. News and World Report data are not available for these schools. While Figure 3.10 shows the proportion of each school s graduates in the state of California, Figure 3.11 shows the proportion of each school s graduates who are employed in the school s region. 18 The region in which each of the law schools is located is displayed in Table 3.7. Figure 3.11 indicates that in a majority of cases, well over half of the graduates stay in the same region as their alma mater. It is noteworthy that three of the regions lack an ABA-approved law school, as does the Residual Region. 18 This information was not available for new graduates. 31

19 Figure 3.11 Percent of All Graduates Working in the Same Region as Law School Attended Percent Hastings College of Law Loyola Marymount Pepperdine University Stanford University University of California Berkeley University of California Davis University of California Los Angeles University of San Diego University of San Francisco Santa Clara University University of Southern California Average of the Rest of the ABA Schools Source: 1999 Martindale Hubbell. Chapman and Western State University are not included because of a lack of data. Whittier Law School was counted in LA County for the regional distribution. Whittier only recently moved to Orange County (1997), and therefore the alumni in the data would have almost entirely graduated from Whittier when it was in LA County. 32

20 Table 3.7 Regional Location of ABA-Approved Law Schools Region Los Angeles Orange County Inland Empire San Diego Santa Barbara Area San Joaquin Valley Sacramento Valley Bay Area Residual Law School(s) Loyola Marymount University Pepperdine University Southwestern University University of California Los Angeles University of Southern California Chapman Western State University Whittier School of Law None California Western School of Law University of San Diego Thomas Jefferson School of Law None None McGeorge School of Law University of California Davis Hastings College of Law Golden Gate University Santa Clara University Stanford University University of California Berkeley (Boalt Hall) University of San Francisco None Students of the Law Schools Figure 3.12 shows that undergraduate schools attended by students from the ABAapproved law schools in California. The figure presents the distribution of students that went to a University of California school or a California State school for their undergraduate degree before attending an ABA-approved law school in California. 19 As the figure displays, less than a third of the students for each of the law schools went to a University of California or a California State University campus for their undergraduate training. The two exceptions are the University of California Davis and Santa Clara University law schools. 19 Western State Law School was not included in the analysis because of problems in retrieving data. 33

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